Baxter raises full-year 2026 reported sales growth outlook to 3%-4% from flat-1%
Company now expects full-year organic sales growth of 2%-3%, up from approximately flat
Baxter sees full-year adjusted EPS of $1.95-$2.15, up from $1.85-$2.05
Result drivers
Segment growth - All segments and divisions delivered growth in both the U.S. and internationally, with Medical Products & Therapies and Healthcare Systems & Technologies cited as key contributors
Tariff refund - Adjusted EPS benefited from a $0.11 per share IEEPA tariff refund, which was not previously included in guidance
Higher-cost inventory and cost reclassification - Adjusted EPS was negatively affected by the roll through of higher-cost inventory from late 2025 and an unfavorable comparison due to the reclassification of certain functional costs from SG&A to cost of sales
Quarterly results
U.S. medtech firm's Q2 revenue rose 5%, beating analyst expectations
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for Baxter International Inc is $21.50, about 13.2% below its July 29 closing price of $24.77
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago
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